Singapore, 4 August 2011 – Keppel Shipyard Ltd (Keppel Shipyard) has secured two contracts worth a total of S$146 million to convert a Floating Production Storage and Offloading (FPSO) unit as well as to fabricate and integrate an external turret mooring system for an existing FPSO unit.
The first contract is from Single Buoy Moorings Inc (SBM) for the conversion of the Very Large Crude Carrier (VLCC) M/T Concorde Spirit into a FPSO facility, to be named FPSO OSX-2. SBM had been engaged by OSX Brasil S.A. (OSX) to supply the FPSO, which is expected to be completed in the second quarter of 2013 and will be deployed in the OGX Petroleo e Gas Participacoes S.A. (OGX) field in Campos Basin, offshore Brazil.
Keppel Shipyard’s work scope on FPSO OSX-2 comprises refurbishment and life extension works, accommodation block extensions for 80 personnel, a new flare tower, a new internal turret mooring system and topside module supports, as well as the installation and integration of topside modules. Work on the vessel is expected to commence in September 2011.
Mr Tony Mace, Chief Executive Officer of SBM Offshore said “Since 2001, Keppel has been our preferred partner and we are pleased to award another FPSO conversion to them. I look forward to continue with this partnership as we build up our FPSO fleet.”
Mr Nelson Yeo, Managing Director of Keppel Shipyard, said, “We are glad for another opportunity to collaborate with our long-time customer SBM and to support OSX. Committed to safe and value-added services, we will work closely with all stakeholders of FPSO OSX-2 towards a successful conversion project.”
Other ongoing projects between Keppel Shipyard and SBM include the fast-track modification and upgrading of the FPSO Cidade de Anchieta and the conversion of the FPSO Cidade de Paraty, which will subsequently proceed to Keppel FELS Brasil’s BrasFELS for installation and integration of topsides. Keppel Shipyard is also undertaking modification and upgrading work on OSX’s first vessel, FPSO OSX-1.
Keppel Shipyard’s second contract is for the fast-track fabrication and integration of an external turret mooring system for Rubicon Offshore International Pte Ltd (Rubicon Offshore).
FPSO Rubicon Intrepid is currently engaged in the production of Galoc Field, west of Palawan Island, the Philippines. Fabrication of the turret is expected to be completed and integrated to the FPSO in the fourth quarter of this year.
The above contracts are not expected to have any material impact on the net tangible assets and earnings per share of Keppel Corporation Limited for the current financial year.
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